85S10504 MM/TSR-D By: Guillen H.B. No. 181 A BILL TO BE ENTITLED AN ACT relating to the salary and retirement benefits paid to certain teachers employed by or retired from public schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. CLASSROOM TEACHER SALARIES SECTION 1.01. Section 21.402, Education Code, is amended by adding Subsections (c-2), (c-3), and (d) and amending Subsection (g) to read as follows: (c-2) Notwithstanding Subsection (a), for the 2017-2018 school year, a classroom teacher is entitled to a monthly salary that is at least equal to the sum of: (1) the monthly salary the teacher would have received for the 2017-2018 school year under the district's salary schedule for the 2016-2017 school year, if that schedule had been in effect for the 2017-2018 school year, including any local supplement and any money representing a career ladder supplement the teacher would have received in the 2017-2018 school year; and (2) $100. (c-3) Subsection (c-2) and this subsection expire September 1, 2018. (d) A classroom teacher employed by a school district in the 2017-2018 school year is, as long as the teacher is employed by the same district, entitled to a salary that is at least equal to the salary the teacher received for the 2017-2018 school year. (g) The commissioner may adopt rules to govern the application of this section, including rules that: (1) require the payment of a minimum salary under this section to a person employed in more than one capacity for which a minimum salary is provided and whose combined employment in those capacities constitutes full-time employment; and (2) specify the credentials a person must hold to be considered a [speech pathologist or] school nurse under this section. SECTION 1.02. Section 42.2513(a), Education Code, is amended to read as follows: (a) A school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount equal to the sum of: (1) the product of $500 multiplied by the number of full-time district employees, other than administrators or employees subject to the minimum salary schedule under Section 21.402; [and] (2) the product of $1,000 multiplied by the number of classroom teachers employed by the district; and (3) the product of $250 multiplied by the number of part-time district employees, other than administrators. SECTION 1.03. Section 21.402(c-1), Education Code, is repealed. SECTION 1.04. This article applies beginning with the 2017-2018 school year. ARTICLE 2. TEACHER RETIREMENT SYSTEM COST-OF-LIVING ADJUSTMENT SECTION 2.01. Subchapter H, Chapter 824, Government Code, is amended by adding Section 824.703 to read as follows: Sec. 824.703. ADDITIONAL COST-OF-LIVING ADJUSTMENT. (a) Notwithstanding Section 824.702, the retirement system shall make a one-time cost-of-living adjustment of $1,000 payable to annuitants receiving a monthly death or retirement benefit annuity, as provided by this section. (b) Subject to Subsections (c) and (d), to be eligible for the adjustment, a person must be, on the effective date of the adjustment and disregarding any forfeiture of benefits under Section 824.601, an annuitant eligible to receive: (1) a standard service or disability retirement annuity payment; (2) an optional service or disability retirement annuity payment as either a retiree or beneficiary; (3) an annuity payment under Section 824.402(a)(3) or (4); (4) an annuity payment under Section 824.502; or (5) an alternate payee annuity payment under Section 804.005. (c) If the annuitant: (1) is a retiree or is a beneficiary under an optional retirement payment plan, to be eligible for the adjustment under this section: (A) the annuitant must be living on the effective date of the adjustment; and (B) the effective date of the retirement of the member of the retirement system must have been after August 31, 2004, and on or before June 30, 2017; (2) is a beneficiary under Section 824.402(a)(3) or (4) or 824.502, to be eligible for the adjustment: (A) the annuitant must be living on the effective date of the adjustment; and (B) the date of death of the member of the retirement system must have been after August 31, 2004, and on or before June 30, 2017; or (3) is an alternate payee under Section 804.005, the annuitant is eligible for the adjustment only if the effective date of the election to receive the annuity payment was after August 31, 2004, and on or before June 30, 2017. (d) An adjustment made under this section does not apply to payments under: (1) Section 824.203(d), relating to retirees who receive a standard service retirement annuity in an amount fixed by statute; (2) Section 824.304(a), relating to disability retirees with less than 10 years of service credit; (3) Section 824.304(b)(2), relating to disability retirees who receive a disability annuity in an amount fixed by statute; (4) Section 824.404(a), relating to active member survivor beneficiaries who receive a survivor annuity in an amount fixed by statute; (5) Section 824.501(a), relating to retiree survivor beneficiaries who receive a survivor annuity in an amount fixed by statute; or (6) Section 824.804(b), relating to participants in the deferred retirement option plan with regard to payments from their deferred retirement option plan accounts. (e) An adjustment under this section must be made beginning with an annuity payable for the month of December 2017. (f) The board of trustees shall: (1) recompute the amount of a benefit paid monthly under this chapter by applying the $1,000 adjustment to the monthly amount otherwise required to be paid as determined in accordance with the other applicable provisions of this chapter; and (2) determine the eligibility for and the amount of any adjustment in monthly annuities in accordance with this section. ARTICLE 3. EFFECTIVE DATE SECTION 3.01. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on the 91st day after the last day of the legislative session.